In the early days of telecommunication, a copper wire medium was used to carry a single information channel. Because the greatest proportion of cost is in the materials and construction of the physical link, telephony engineers have developed ways to pack multiple channels onto a single physical link. Frequency division multiplexing (FDM) and time division multiplexing (TDM) have been devised to multiplex multiple streams of analog and pulse code modulation (PCM) digital signals, respectively, into one. For digital signals, the time division multiplexing hierarchy is DS0 through DS4, where a DS0 is a single 0.064 Mbps channel, a DS1 is 24 DS0s multiplexed together, and a DS4 is 4,032 DS0s multiplexed together.
A similar time division multiplexing scheme is used in international telephone systems based on 32-channel format, where each channel is occupied by a DS0 signal. The international digital systems, based on International Telecommunication Union CCITT's G.700 Series Recommendations, are commonly called E1 or CEPT-1. The E1 signals are based on blocks of 32 channels or time slots, of which time slot 0 and time slot 16 are typically used for control and signaling, respectively.
American telecommunications equipment manufacturers desiring to compete in the international arena must design and produce equipment that operate under the international standard. Alternatively, in order to achieve compatibility, telecommunications equipment which were originally designed and manufactured to handle signals under the American standards must be modified to accommodate international signals.